The National Assembly has passed the Startup Bill of 2022 which seeks to outline various measures to support startups and establish frameworks for their growth and protection.
The Bill introduces key definitions, including startup, accelerator, incubation program, and startup ecosystem players.
It also designates the Cabinet Secretary responsible for micro, small, and medium enterprises to oversee implementation.
According to the Bill, the Kenya National Innovation Agency and Kenya Industrial Estates have been mandated to support startups by developing a national incubation framework, fostering innovation, and creating linkages between universities and the business sector.
Additionally, a multi-agency startup committee will oversee certifications, develop guidelines for incubators and accelerators, and accredit startups.
The Startup Bill in Clause six outlines criteria for startups to receive official labeling, including Kenyan registration, a focus on innovation, limited turnover, and spending at least 15% of expenses on research and development.
Members of the National Assembly okayed incentives and Protections are introduced in the Bill in Clauses 27, 27A, and 27B which outline fiscal and non-fiscal incentives for startups, incubators, and investors.
These include tax reliefs, grants, subsidies, and access to government procurement opportunities.
Intellectual property rights are also a priority, with Innovators are set to benefit as the newly passed Start Up Bill mandates the Kenya Industrial Property Institute to expedite IP registration and protect innovations.
The Bill establishes a Startup Fund (Clause 32A) to provide financial support. Funding sources include government appropriations, grants, and donations.
Speaking during the debate, lawmakers’ lauded the Bill as a critical tool for empowering local entrepreneurs.
“This Bill will position Kenya as a global innovation hub, offering young innovators a pathway to turn ideas into viable businesses,” said nominated MP Irene Mayaka.
On her part, the Vice Chairperson of the Trade, Industry’ Committee, Marianne Keitany emphasized inclusivity, saying, “The provisions ensure startups from marginalized communities access resources and opportunities.”
The Bill now awaits presidential assent to become law.
